Filings

a. OASI claims exclude those filed by disabled widow(er)s and disabled adult children of retired or deceased workers, which are included in the DI claims.

Supplemental Security Income

SSI federal payment standard, 2000:

$512 for an individual

$769 for a couple

Poverty thresholds

Poverty thresholds, 1997–1999

Family unit

1997

1998

1999(preliminary)

Aged individual

7,698

7,818

7,990

Family of two, aged head

9,712

9,862

10,070

Family of four

16,400

16,660

17,184

SOURCE: U.S. Census Bureau.

Income of the Aged Population

Size of Income

Median income of aged units, 1962 and 1998

Median annual income for both married couples and nonmarried persons increased markedly from 1962 (the earliest year for which data are available) to 1998. Even after adjusting for inflation, median income rose 95% for married couples and 98% for nonmarried persons.

Median income of aged units (1998 dollars)

Receipt of Income

Sources of Income, 1962 and 1998

Social Security benefits, which were the most common source of income in 1962, are now almost universal. The proportion of aged units with asset income, the next most common source, has grown from about one-half to nearly two-thirds. Over the 36-year period, receipt of private pensions has more than tripled and receipt of government pensions has increased by over 50%. A smaller proportion of couples and nonmarried persons aged 65 or older received earnings in 1998 than in 1962.

Percentage of aged units receiving income from various sources

Shares of Aggregate Income

Proportion of income from various sources, 1962 and 1998

In 1962, Social Security, private and government employee pensions, income from assets, and earnings made up only 84% of the total income of the aged, compared with 97% in 1998. Although private pensions still accounted for only a small proportion of total income in 1998, they more than tripled their share in the period—from 3% to 10%. The share from earnings declined from 28% to 21%.

Percentage of aggregate income of the aged from various sources, 1998

Reliance on Social Security

Importance of benefits, 1998

The OASDI program paid benefits to 90% of those aged 65 or older in 1998. It was the major source of income (providing at least 50% of total income) for 63% of the beneficiary units (couples or nonmarried persons), and it was the only source of income for 18%.

Percentage of beneficiary units with Social Security benefits as a major source of income, 1998

Benefits Affect Poverty

Benefits reduce poverty rates, 1998

About two-fifths of the aged were kept out of poverty by Social Security benefits in 1998, a proportion that varies little by marital status or race. Overall, 9% of aged beneficiaries were poor; without Social Security, the total poverty rate would have been 48%. (Data are based on family income rather than aged person income to conform to official measures of poverty.)

Aged units and poverty status

OASDI Program

Workers and Insured Status

Workers with taxable earnings, 1937–99

In 1999, 152 million workers had earnings in employment covered by the Social Security program. Of these workers, 6% had earnings that equaled or exceeded the maximum amount currently subject to Social Security taxes, compared with 3% when the program began and a peak of 35% in 1965. About 85% of the earnings of workers in covered employment were taxable in 1999, compared with 92% in 1937.

Percentage of covered workers with maximum earnings and percentage of earnings taxable

Workers and Insured Status

Insured workers, 1970–2000

Of persons aged 20 or older, the percentage insured for benefits has steadily increased over time. The percent permanently insured (those with enough covered work experience to qualify for retired-worker benefits at retirement age) rose from 50% in 1970 to 69% in 2000. The percentage fully insured increased from 77% to 88%. To be fully insured, a worker must have at least one quarter of coverage for each year elapsed after 1950 (or age 21, if later) and before the year in which he or she attains age 62 or becomes disabled. To be insured for disability, the worker must be fully insured and have at least 20 quarters of coverage during the last 40 quarters. (Requirements for currently insured status are somewhat different for persons younger than age 31.)

Insured workers, aged 20 or older, as a percentage of the corresponding population, 1970–2000

Year a

Population(in millions) b

Permanentlyinsured

Fullyinsured

Insured fordisability

1970

135.2

50

77

52

1975

147.5

50

80

54

1980

162.0

53

83

58

1985

175.1

57

84

60

1990

186.0

63

86

62

1995

194.7

66

87

64

2000

204.8

69

88

66

SOURCE: Office of the Chief Actuary, SSA.

a. As of December 31.

b. The population in the Social Security area includes residents of the 50 states and the District of Columbia; civilian residents of American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the Virgin Islands; federal civilian employees and Armed Forces abroad and their dependents; crew members of merchant vessels; and all other U.S. citizens abroad.

Workers and Insured Status

Insured status, by sex, 1970 and 2000

Although men are more likely than women to be insured, the gender gap is shrinking. The proportion of men insured has remained essentially stable, with 93% fully insured and about 73% insured for disability. By contrast, the proportion of women insured has increased dramatically—from 63% to 83% for those fully insured and from 33% to 60% for those insured for disability.

Percentage of population aged 20 or older insured for benefits, by sex

New Benefit Awards

Benefits awarded, 1999

Benefits were awarded to 3.9 million persons in 1999. Forty-three percent were retired workers and 16% were disabled workers. The remaining 41% were survivors and/or dependents of workers—that is, spouses and children of retired or disabled workers who received benefits based on the worker's earnings record.

Awards, 1999

Type of beneficiary

Total number(in thousands)

Totalpercent

New awards

3,917

100

Retired workers and dependents

2,065

52

Workers

1,690

43

Spouses and children

375

9

Disabled workers and dependents

1,045

27

Workers

621

16

Spouses and children

424

11

Survivors of deceased workers

807

21

Percentage of benefits awarded, 1999

New Benefit Awards

Benefits awarded to workers, 1960–99

Benefits awarded to retired workers have increased considerably since 1960 but proportionately much less than benefits to disabled workers. The patterns of growth have also differed. Retired-worker awards rose steadily during the first half of the period, then leveled off around 1980 and have since declined slightly. Disabled-worker awards increased rapidly until the late seventies, then declined considerably for about a decade, resuming their growth during the nineties.

Awards

Benefits in Current-Payment Status

Persons receiving monthly benefits, December 1999

More than 44 million persons were receiving monthly Social Security benefits in December 1999. Of these, the majority were retired workers.

Benefit receipt, by type of beneficiary

Type of beneficiary

Total number(in thousands)

Totalpercent

Total with benefits in current-payment status

44,596

100

Retired workers and dependents

31,028

69

Workers

27,775

62

Spouses and children

3,253

7

Disabled workers and dependents

6,524

15

Workers

4,879

11

Spouses and children

1,644

4

Survivors of deceased workers

7,044

16

Percentage of beneficiaries in current-payment status

Benefit Amounts

Average amount of newly awarded benefits and benefits in current-payment status, 1999

Benefits payable to workers who retire at the normal retirement age and to disabled workers are equal to 100% of the PIA (subject to any applicable deductions). At the normal retirement age, widows benefits are also payable at 100% of the insured worker's PIA. Nondisabled widows and widowers can receive reduced benefits at age 60. Disabled widow benefits are payable (with a greater reduction) at age 50. Spouses, children, and parents receive smaller proportions of the worker's PIA than widows do.

Average monthly benefit amounts, 1999 (in dollars)

Type of beneficiary

Newawards

Current-paymentamount

Retired workers

795

804

Spouses

338

411

Children

351

373

Disabled workers

783

754

Spouses

207

189

Children

212

216

Survivors

Nondisabled widows and widowers

715

775

Disabled widows and widowers

502

500

Widowed mothers and fathers

569

566

Surviving children

539

526

Parents

688

674

Benefit Amounts

Hypothetical benefit amounts, 2000

A covered worker who had worked continuously at low wages (45% of average national wages) and who claimed benefits at age 62 in January 2000 would have received a monthly benefit of $518. One who had earnings at or above the maximum amount subject to Social Security taxes and who claimed benefits at age 65 would have received $1,433.

Hypothetical benefit amounts for a person who claimed benefits in January 2000

SOURCE: Office of the Chief Actuary, SSA.

NOTE: Low earnings are defined as 45% of the national average wage index, average earnings are equal to the index, high earnings are 160% of the index, and maximum earnings are equal to the OASDI contribution and benefits base.

Beneficiaries by Age

Age of persons receiving benefits, December 1999

Some 81% of all OASDI beneficiaries with benefits in current-payment status were aged 62 or older in December 1999. Among OASI beneficiaries, 93% were 62 or older. Among DI beneficiaries (disabled workers and their spouses and children), most were under age 62.

Percentage of beneficiaries, by age

NOTE: Percents may not sum to total due to rounding.

Beneficiaries by Age

Age of disabled-worker beneficiaries, 1960–99

The average age of disabled-worker beneficiaries in current-payment status has declined substantially since 1960, when DI benefits first became available to persons younger than age 50. In that year, the average age of a disabled worker was 57.2 years. By 1980, it had fallen to 53.2, and in 1999, the average age was 50.6 years.

Average age of disabled-worker beneficiaries

Beneficiaries by Sex

Sex of persons receiving monthly benefits, December 1999

Of all adults receiving monthly Social Security benefits at the end of 1999, 42% were men and 58% were women. More than 80% of the men and more than 55% of the women received retired-worker benefits. Slightly less than one-fourth of the women received survivors benefits.

Percentage of adult beneficiaries, by sex

Beneficiaries by Sex

Average monthly benefit amounts, December 1999

Among retired and disabled workers who collected benefits based on their own work record, men received a higher average monthly benefit than women. For those who collected benefits based on another person's work record (spouses and survivors), women had higher average benefits.

Average monthly benefit by sex, December 1999 (in dollars)

Type of beneficiary

Men

Women

Total

884

665

Retired workers

905

698

Spouses

235

413

Disabled workers

846

630

Spouses

145

190

Survivors

Nondisabled widows and widowers

572

776

Disabled widows and widowers

340

504

Mothers and fathers

474

570

Beneficiaries by Sex

Women-worker beneficiaries, 1940–99

The proportion of women among retired-worker beneficiaries has quadrupled since 1940. The proportion of women among disabled-worker beneficiaries has more than doubled since 1957, when benefits first became payable to disabled workers.

Percentage of women-worker beneficiaries, 1940–99

Dual Entitlement

Dual entitlement, 1960–99

The proportion of women aged 62 or older who are receiving benefits as dependents (that is, on the basis of their husband's earnings record only) has been declining—from 57% in 1960 to 35% in 1999. At the same time, the proportion of women with dual entitlement (that is, paid on the basis of both their own earnings record and that of their husband) has been increasing—from 5% in 1960 to 27% in 1999.

Receipt of benefits by women at age 62 or older, 1999

SSI Program

Recipients

Historical comparison, by age, 1974–99

Shortly after the SSI program began in 1974, the number of persons receiving federally administered payments rose to 4 million. It remained at about that level until the mid-1980s, then rose through the mid-1990s. In 1999, it stood at nearly 6.6 million.

Persons receiving federally administered SSI payments

December

Total number(in thousands)

1974

3,216

1976

4,326

1978

4,217

1980

4,142

1982

3,858

1984

4,029

1986

4,269

1988

4,464

1990

4,817

1992

5,566

1994

6,296

1996

6,614

1998

6,566

1999

6,557

Persons receiving federally administered SSI payments

Payment Amounts

Average monthly payments, by age group, December 1999

The average federally administered SSI payment was $369 in December 1999. Payments varied by age group, ranging from an average of $450 for those under 18 to $293 for recipients aged 65 or older.

Average monthly SSI payment amount

NOTE: As of 1998, these figures exclude retroactive payments.

Federally Administered Payments

Recipients by type of payment, December 1999

Over 6 million persons received federally administered SSI payments in December 1999. Most received federal SSI only. States have the option of supplementing the federal benefit rate and are required to do so if that rate does not equal the income the recipient would have had under the former state program.

Percentage of recipients, by type of payment

a. Excludes state-administered state supplementation.

Basis for Eligibility

Recipients by basis for eligibility and age, December 1999

One-fifth of SSI recipients have been awarded benefits on the basis of age; most of the rest on the basis of disability. One-third of the recipients were aged 65 or older. In the SSI program—unlike the OASDI program—a disabled recipient can be aged 65 or older. (DI beneficiaries are converted to the retirement program when they attain age 65.)

SSI recipients, by basis for eligibility

Recipients by Age

Historical comparison, by age, 1974–99

The proportion of SSI recipients aged 65 or older has declined from 61% in January 1974 to 31% in December 1999. The long-term growth of the SSI program has occurred because of an increase in the number of disabled recipients, most of whom are under age 65.

Percentage of SSI recipients aged 65 or older

Recipients by Sex and Age

Distribution by sex and age, December 1999

Overall, 59% of the SSI recipients in December 1999 were women, but this varied by age group. Women accounted for nearly three-fourths of recipients aged 65 or older, over half of those aged 18–64, and over a third of those under age 18.

Number and percentage of SSI recipients, by sex and age

Other Income

Type of other income received, December 1999

Nearly two-thirds of aged SSI recipients received OASDI benefits in December 1999, as did about one-third of those aged 18–64 and 7% of those under age 18. Other types of unearned income, such as veterans' pensions or income from assets, also occurred most frequently among those aged 65 or older (16%), while earned income was most prevalent (7%) among those 18–64.

Percentage with other income, by source and age

OASDI and/or SSI

All Beneficiaries

Receipt of OASDI and SSI payments, December 1999

More than 48 million persons received a payment from Social Security in December 1999. Most (42.2 million) received OASDI benefits only; about 4.2 million received SSI only; and 2.4 million received payments from both programs.

Receipt of OASDI and/or SSI

Type of beneficiary

Number(in thousands)

Total receiving OASDI and/or SSI

48,770

Total receiving OASDI

44,596

Receiving OASDI only

42,213

Total receiving SSI

6,557

Total receiving SSI only

4,173

Receiving both OASDI and SSI

2,383

Number receiving OASDI and/or SSI

Beneficiaries Aged 65 or Older

Receipt of OASI and/or SSI aged benefits, December 1999

Aged or survivors benefits were paid to 32.9 million persons aged 65 or older in December 1999. About 1.2 million of them received both OASI and SSI.

Receipt of OASI and/or SSI aged benefits

Type of beneficiary

Number(in thousands)

Aged 65 or older, total (unduplicated)

32,938

OASI total a

32,125

Retired workers

25,304

Spouses

2,474

Nondisabled widow(er)s

4,280

Disabled adult children aged 65 or older

63

SSI total b

2,019

Receiving SSI only

813

Concurrently receiving both OASI and SSI

1,206

a. Total includes 4,800 persons who received either dependent parents benefits, special age-72 benefits, or mothers/fathers benefits.

Disabled Beneficiaries

Receipt of disability payments, December 1999

Payments based on the beneficiary's own disability were made to 9.1 million persons under age 65 in December 1999. About 37% of them received payments from the SSI program only, 50% received payments from the OASDI program only, and 13% received payments from both programs.

Children and Social Security

Children and OASDI

Current receipt, December 1999

Over 3 million children under age 18 and students aged 18–19 received OASDI benefits in December 1999—about half of them as the children of deceased workers. These children had the highest average payments, in part because they are eligible to receive monthly benefits equal to 75% of the worker's PIA, whereas the children of retired or disabled workers may receive 50%. Overall, the average monthly benefit amount for children was $363.

Number of children receiving OASDI

Children and SSI

Recipients and payment amounts, 1974–99

In 1974 when the program began, there were 70,900 blind and disabled children receiving payments under SSI. Since then, that number has increased ten-fold. The relatively high average payment to children (compared with those made to blind and disabled adults) is due in part to a limited amount of other countable income. The peak in average monthly benefits in 1992 is due to retroactive payments resulting from the Sullivan v. Zebley decision.

Children receiving SSI

a. As of 1998, these figures exclude retroactive payments.

SSA's Role in Reducing Poverty

Social Security's role in reducing poverty for children

In 1998, 7 million children were living in families receiving OASDI and/or SSI benefits. About 1.1 million children would have resided in families with incomes below the poverty line without these benefits. About 2.3 million children were still poor even though OASDI and SSI benefits improved their situation.